US private-sector payrolls increased by a moderate 177,000 in August, according to the ADP Employment Report. Although the increase is below July’s upwardly revised increase of 194,000, the expansion is strong enough to support the view that the US economy is still on track to post stronger growth in the third quarter and repair some of the damage from the weakness in this year’s first half.
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Consumer confidence bounced to its highest level in nearly a year, according to yesterday’s update from the Conference Board. Boosted by optimism on the outlook for the labor market, the index follows news on Monday that year-over-year private-sector wage growth in July strengthened for the second month in a row, rising 4.3%–the fastest annual pace since January.
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